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Our Stock Trading Days are OVER!

December 13th, 2010 at 06:47 pm

Almost 2 years ago we opened a Schwab account. Since then, we've made a grand total of two stock trades (or four, depending on how you count them ... Twice we bought shares in a company, and then sold it).

Today I called & liquidated the account because my poor DH just couldn't stomach it. After we bought the stock, he'd sit there and watch the price constantly, and even after we sold it he would sit there and STILL watch the price, second-guessing the decision to sell.

Poor guy was a nervous wreck. It just wasn't worth it.

Once he practically screamed at me "How can you be so calm about this???" Well, the answer is that even if we had lost every penny we had put in to the stock we still would have been fine. It wasn't like we had bet the farm. And I knew that my getting excited about it wasn't going to change the price of the stock one bit.

When we sold the last stock, I told him that we either had to: 1) choose some dividend-paying stocks to buy & hold, or 2) cease buying individual stocks forever. He chose option 2. As soon as our last sale had settled, I made the phone call to Schwab and a check is on the way. The check will go in to our savings account, and we will continue with our plain-vanilla investments.

P.S. Since inquiring minds will want to know, no, we didn't lose money. (We made a little in fact.) That's not why we liquidated the account. It was purely for my DH's mental health.

5 Responses to “Our Stock Trading Days are OVER!”

  1. ThriftoRama Says:

    Huh. So what do you mean by plain vanilla investments. I thought stocks were plain vanilla!

    I will say though, it's all about risk tolerance. Clearly, stocks were not the right thing for you!

  2. FrugalTexan75 Says:

    That sounds like you two made a decision that was the best for you. Good to see you. Smile

  3. Petunia 100 Says:

    I gave up picking individual stocks years ago, I stick with index funds. Some people can do it very well, but it just isn't for me. It's great that you didn't lose any money!

  4. Analise Says:

    You made the right decision. Individual stocks are not for everyone, especially if you lose sleep worrying about the performance. Mutual funds might be a better choice. I'm glad you didn't lose money.

    I have a brokerage account with individual stocks. I did your "Option 1" years ago, along with a few solid tech stocks that don't pay dividends. I am happy with the results, despite the roller coaster ride of the last few years. You made a good point about not betting the farm... it's wise to only invest $$ you can afford to lose.

  5. baselle Says:

    I have to agree that owning individual stocks is not for everyone ... It isn't even really for me, with the exception of dividend reinvestment stocks. I must have inherited my stock tolerance from my grandpa... and not everyone had my grandpa.

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